Trade Plan for 9/17
See the weekly post before reading: The Week Ahead
Make note that contracts are being rolled from ESU to ESZ which is why if you are on Tradingview you may see a large gap up on ES1 if you don’t back adjust your charts. This is why you will see 2 levels/ranges for each spot in our plans for the week and Monday. I will be using ESZ levels moving forward. If you are not familiar with contract roll I may do a free post on it in the near future.
For today we were primarily monitoring 5620-21 and 5635-38 on the ESU (September) contract. While I was hoping for a different and bigger trade to set up, we were monitoring for a look below and fail of 5620 (even as low as 5609-15 which was 3 handles on either side of 5612) to long up to 5635-38. This became of particular interest when we saw the continued buy response overnight and premarket in the 5622-25 range.
Note the persistent buying premarket and how the sell impulse at the open swept those lows including the 5620 spot and then reversed aggressively to 5638.
Sellers then stepped back in at 5638 again and produced a lower low in the 5612 +/- 3 handle range we were monitoring (5609.5 low of day). This second long was likely very difficult to navigate into as price was extremely choppy below 5625, likely as a function of contract roll. Ultimately bulls broke to the upside for another test of 5638.
Bulls remain in control until they aren’t. We have a box we are utilizing for tomorrow for our primary trades. We’ll see if we get a break of one side or the other and a nice move, or if we simply chop a bit longer into FOMC as contracts are rolled
The first 5 parts in my free series explaining some basic profile concepts is now available at www.pharmdcapital.com. Click PharmDCapital This section and other free material will be added to over time. Scroll down to the “Want a Taste” section to read it.
To learn more about how I trade, see the post “What is Trading Doggy Style” Here